Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq Stock Exchange following the completion of its business combination with Churchill Capital Corp IV in New York, New York on July 26, 2021 .
Andrew Kelly | Reuters
Manufacturer of electric vehicles The Lucid Group cut its production numbers again on Wednesday as supply chain and logistics issues mean demand for the company’s electric vehicles far outstrips production.
The company said it now has more than 37,000 bookings for the Air electric luxury sedan, up from over 30,000 in May – but it only delivered 679 cars in the second quarter. In February, it announced that it is expected to build 12,000 to 14,000 vehicles in 2022up from the original forecast of 20,000.
The company cut its full-year delivery guidance for the second time, saying it now expects to deliver just 6,000 to 7,000 vehicles in 2022, and announced a new senior executive to lead operations.
Lucid shares fell about 12% in after-hours trading following the news.
The announcements came as Lucid announced its second quarter results. Here are the key numbers:
- income: 97.3 million dollars
- Loss per share: 33 cents
- Delivered vehicles: 679
“Our revised production guidance reflects the extraordinary supply chain and logistics challenges we have faced,” CEO Peter Rawlinson said in a statement. “We have identified the main bottlenecks and are taking appropriate measures – moving our logistics operations in-house, adding key employees to the management team and restructuring our logistics and manufacturing organization.”
Earlier this year, Lucid cited supply chain issues around semiconductor chips, as well as core components such as glass and carpet, as reasons for the cuts.
In an interview with CNBC, Rawlinson said the process of addressing supply chain issues has left the company facing another set of bottlenecks.
“It really exposed the next level of problems, the immaturity of our logistics systems,” Rawlinson said, explaining that Lucid is in the process of bringing shipping and other services in-house.
To help with the challenges, Lucid announced Wednesday that it has hired him Stellantis veteran Steven David will serve as senior vice president of operations, responsible for the company’s manufacturing, logistics and quality control.
CFO Sherry House told CNBC that the company’s total of 37,000 bookings does not include any bookings for its upcoming Gravity SUV or any of the vehicles ordered by the Saudi government.
Lucid said in April that the Saudi government had agreed to buy up to 100,000 of its cars over the next 10 years. The country’s public welfare fund is a large investor in Lucid, holding approximately 62% of the company’s shares.
Lucid had $4.6 billion in cash and cash equivalents at the end of the second quarter, down from $5.4 billion at the end of March, but that’s enough to fund operations “through 2023,” House said.
This is a developing story. Check for updates.
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